Voice of the people (letter).

Insurance Rules

October 23, 1999|By Robert F. Blameuser.

LINDENHURST — I disagree with the Oct. 10 editorial that says the recent court decision involving State Farm will result in a monopoly for car-part makers. As a licensed insurance agent, I know that the purpose of casualty insurance is to indemnify against loss. What this means, in the case of auto insurance, is that the car should be returned to the same condition it was in before it became damaged. This usually does not happen with non-OEM (original equipment manufacturers) parts, because the parts are usually (but not always) inferior. That's not automatically bad. It may not make sense to put a galvanized fender on a car with 150,000 miles on it. But if an insured loses a galvanized fender in a crash, that's the loss for which they should be compensated. The insured then has the option of purchasing a cheaper part and pocketing the rest of the compensation, or buying a part of original quality or even a better, more expensive specialty part.

Thus the free market functions, and no monopoly is granted the OEM partmakers. Insurance companies should not be allowed to pocket damages due their insureds.